How much do you need to sell to cover your costs?

Enter your fixed costs for the period, the price you sell at and what each unit costs you to produce or buy. The calculator gives the number of units where you stop losing money.

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Break-even point

Amounts in MAD. Fixed costs are those you pay whatever you sell, such as rent and salaries.

Fixed costs for the period (MAD)Selling price per unit (MAD)Variable cost per unit (MAD)

Contribution per unit: 120,00 MAD
Revenue at break-even: 62.500,00 MAD
Units to sell to break even: 250

A general calculation from the figures you enter. Check the result before you use it in a quote or a decision.

How it works

The break-even point is the sales volume at which revenue equals total costs. Below it you lose money, above it you make a profit.

Each unit you sell contributes its price minus its variable cost toward the fixed costs. Break-even units = fixed costs ÷ (price − variable cost per unit), rounded up to a whole unit.

With 30 000 MAD of fixed costs, a price of 250 MAD and a variable cost of 130 MAD, each unit contributes 120 MAD. You need 250 units, which is 62 500 MAD of revenue.

Limits

It assumes the price and the variable cost stay the same whatever the volume.
It uses one product. With several, use an average price and average cost.

Questions

What counts as a fixed cost?

Costs that do not change with the number of units sold in the period: rent, salaries, insurance, subscriptions, loan repayments.

What counts as a variable cost?

Costs that grow with each unit: materials, goods bought for resale, packaging, delivery, card fees.

Why does the calculator say there is no break-even point?

Because the selling price is not higher than the variable cost. Each sale then adds nothing toward your fixed costs, and no volume will cover them.

Go further

See your costs and sales in one place

Record invoices and expenses in Alladdin and compare what comes in with what you spend, month after month.

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